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Life throws us financial curveballs from time to time, which we may sometimes not be ready for. In times when your bank account is a bit short, a personal loan can be a lifesaver. With a personal loan, you can cover a pressing cost and spread that cost out over a long period, making it easier to manage a big expense.
Even if you have poor credit, a personal loan may still be accessible if you know where to look. In the guide below, we’ll walk you through how to find one in Quebec.
What Is A Personal Loan?
A personal loan is an installment loan that provides a lump sum of cash that can be used to cover just about any expense. Then, you’ll repay what you’ve borrowed — plus interest — over a set term until the loan is paid back in full.
Personal Loan Features
| Loan Amounts | $500 — $35,000+ |
| Loan Interest Rates | 9.99% — 35% |
| Interest Terms | 3 months — 5 years |
What Kind Of Expenses Can I Cover With A Personal Loan?
A personal loan is a versatile financing option and offers lots of flexibility when it comes to how you may spend the borrowed funds. Here are just a few examples of expenses you can pay for with the funds from a personal loan:
- Home repairs
- Buying furniture or appliances
- Medical bills
- Car repairs
- Tuition fees
- Wedding expenses
- Consolidating multiple debts
There are typically no restrictions on how you use the funds, as long as you meet the lender’s criteria.
Learn more: Personal Loans
How Do You Qualify For A Personal Loan?
The requirements for a personal typically include the following:
- Residency: You need to live in Quebec, where your lender operates.
- Age Of Majority: You must be 18 years old to apply for a personal loan in Quebec.
- Income: Your income must be sufficient to cover your loan payments.
- Debt-To-Income (DTI) Ratio: Your debt relative to your income will be assessed to ensure there will be enough left over after your current bills have been paid to make your loan payments.
- Credit Score: Lenders typically conduct a credit check to assess your creditworthiness. However, some lenders, like payday lenders, don’t require a credit inquiry and accept bad credit.
| What Credit Score Is Required? Generally, lenders like to see a credit score of at least 660. However, alternative lenders typically accept scores under this threshold. Keep in mind that even if you can get a loan with bad credit, you’ll pay more for the loan due to higher interest rates. |
Learn more: Personal Loan Requirements: How To Qualify For A Personal Loan
Can You Get A Personal Loan With Bad Credit?
Yes, as mentioned, it may be possible to get a loan even if your credit score is lagging. While traditional banks may be hesitant to approve loans for those with bad credit, many alternative lenders specialize in working with borrowers who have low or no credit scores.
Rather than focus on your credit score, these lenders assess your overall financial situation. Factors like your income, employment stability, and current debt levels play a key role in their decision-making process.
Keep in mind, though, that these loans often come with higher interest rates and fees compared to loans from banks.
Learn more: How To Get A Loan With Bad Credit In Quebec
Where Are Personal Loans Available In Quebec?
Personal loans are available from banks, credit unions, or alternative lenders.
- Banks: Traditional lenders offer personal loans with lower interest rates and flexible terms. However, approval usually requires strong credit and income. The bank loan application process can be slower, with more paperwork and longer wait times for funding.
- Credit Unions: Credit unions often provide lower rates and more lenient terms, and may work with borrowers with diverse financial backgrounds. However, you’ll need to become a member of a credit union to apply.
- Alternative Lenders: These lenders cater to a wider range of borrowers, including those with poor or no credit history. They’re ideal for fast access to funds, but usually come with higher interest rates and fees than traditional bank loans.
Are Personal Loans Available Online?
Yes, you can apply for a personal loan online from anywhere in Quebec. These days, more and more lenders are making their services available online. Here are a few options to consider, which are available both online and in person:
| Fairstone | Personal loans are available online and in person. | Learn More |
| easyfinancial | Personal loans are available online and in person. | Learn More |
| Spring Financial | Personal loans are available online only. No Physical branches are available. | Learn More |
| LoanMeNow | Personal loans are available online only. No Physical branches are available. | Learn More |
Is It Better To Apply For A Personal Loan Online?
Applying for a personal loan online can be much more convenient than applying in person for a number of reasons:
- Convenience: Apply anytime and from anywhere without visiting a physical branch.
- Faster Process: Online applications often come with quicker approvals.
- Loan Comparison: Easily compare multiple lenders and loan options side-by-side.
- Less Paperwork: Digital applications reduce the need for physical documents to streamline the process.
How To Apply For A Personal Loan
Step 1: Get Pre-Approved
Before applying for a personal loan, get pre-approved with multiple lenders first. This will allow you to compare various loan offers based on your financial situation. Moreover, the pre-qualification process is often instant and only requires a “soft” credit check, so it won’t negatively impact your credit scores.Step 2: Choose A Lender
Compare your loan offers and choose one that comes with affordable rates and favourable terms. Be sure to also compare funding times if you need the cash urgently.Step 3: Gather All Required Documents And Apply
You’ll need to provide your lender with specific documents to verify your creditworthiness and identity. You can upload these documents and submit them electronically with your application. This may include a government-issued photo ID, bank statements, pay stubs and other related documents. Be sure to read over the application to make sure all the information is accurate.Step 4: Wait For Approval
Once you’ve submitted the application you should receive a response shortly after. If approved, the funds will be deposited into your account within 24 to 48 hours (via direct deposit or e-Transfer), depending on the lender.Learn more: How To Apply For A Loan
Provincial Regulations To Know When Applying For A Personal Loan In Quebec
Each province has its own personal loan rules and regulations to protect consumers from predatory lenders. When dealing with a lender, they must:
- Have A Quebec Licence Number – When dealing with a private personal loan lender, they must have a license number issued by the Office de la protection du consommateur in Quebec to legally operate in Quebec.
- Provide A Contract In Your Preferred Language – The lender must provide the contract in the language you prefer.
- Follow Interest Rates Regulations – In Canada, including Quebec, personal loan lenders cannot charge interest rates over 35% APR.
What To Do If Your Lender Treated You Unfairly
Businesses in Quebec are required to follow a set of rules when dealing with consumers.
In Quebec, it’s the Office de la Protection du Consommateur that enforces the laws regarding businesses and the treatment of consumers. If you believe that you’ve been unfairly treated by a business, you can reach out to this office for guidance.
What To Consider Before Applying For A Personal Loan
Before applying for a personal loan, you want to make sure you put your best foot forward to ensure you get approved. To do that, follow these tips:
- Improve Your Credit Score: Lenders typically rely on your credit score to assess risk, so increasing it can improve your odds of loan approval with better rates.
- Get A Cosigner: A cosigner is someone with strong credit who can strengthen your loan application by lowering the lender’s risk. Just remember, the cosigner is legally responsible if you default, so make sure that person understands the risks.
- Secure The Loan With An Asset: Offering collateral can make lenders more willing to approve your loan. It reduces their risk and may even help you qualify for lower interest rates.
- Pay Off Some Debt: Lowering your existing debt improves your debt-to-income ratio, which shows lenders that you’re financially responsible.
- Get A Stable Job: A steady income stream reassures lenders that you can manage your monthly loan payments.
What’s Involved In Loan Cost Calculation?
Loan cost involves a mix of several financial elements that determine how much you’ll pay over time:
- Loan Amount: A higher loan amount means higher monthly payments and overall costs over the life of the loan.
- Interest Rate: The rate you’re charged plays a key role in the cost of your loan. Even a fraction of a percent can make a huge difference in how much you’ll pay.
- Loan Term: Longer loan terms reduce monthly payments, but increase total interest paid. Shorter terms cost less overall, but require higher monthly payments.
| Calculate Your Loan Costs: A quick and easy way to calculate your personal loan payments and overall cost is to use this online personal loan calculator. |
Is A Personal Loan The Right Option For You?
When does a personal loan make sense, and when might it not be the right financing option? Consider the following to help you decide:
| When A Personal Loan Is The Right Option | When A Personal Loan Is Not The Right Option |
| You want a loan that can be used to cover any expense. | You have a specific expense that needs covered, of which there is a loan option specifically for that purchase (ie. mortgages or car loans). |
| You want a lower rate and can qualify thanks to a healthy credit score. | You can’t qualify for a lower rate due to poor credit or financial instability. |
| You want to spread the cost of a big purchase and have the financial means to cover these payments. | You have a small or frivolous expense. |
Can’t Get A Loan In Quebec? Check Out These Financial Assistance Programs
Personal loans may be a good option to help you temporarily manage your financial troubles, but other alternatives are available. The provincial government provides a variety of assistance programs that are designed to alleviate financial struggles among Quebecers, including the following:
| Social Assistance Program | Learn More |
| Social Solidarity Program | Learn More |
| Basic Income Program | Learn More |
| Rent Supplement | Learn More |
| Low-Rental Housing | Learn More |
Other Financial Assistance Programs In Quebec
In addition to the government-backed programs, personal loans, and staffing agencies mentioned above, several other programs are available in Quebec to help residents facing financial struggles. A quick and easy way to find these programs is by searching www.211.ca, a website that connects Quebecers with various services across the province.
Here are a few available resources that you can find on www.211.ca:
Food Assistance
Whether you’re in need of free food in an emergency situation or need some financial assistance to offset the cost of groceries, there are several organizations throughout Quebec that can help, including the following:
- Help in Saint-Gilbert: 61, rue Principale, Saint-Gilbert, Capitale-Nationale, QC, G0A 3T0
- Foundation Olo: Tour Est 550, rue Sherbrooke Ouest, bureau 230, Montréal, QC, H3A 1B9
- Food Banks of Quebec: 555 Roland-Therrien Boulevard, Suite 230, Longueuil, Montérégie, QC, J4H 3Y9
Affordable Household Goods And Clothing
Many thrift stores are available throughout Quebec that offer heavily discounted clothing, household goods, furniture, and other items. Here are a few to check out:
- Armée du Salut, Région de Québec: 815, boulevard Wilfrid-Hamel, Québec, Capitale-Nationale, QC, G1M 2R6
- Au Revend Dons: 1926, boulevard Bastien, Québec, Capitale-Nationale, QC, G2B 1C1
- Centre d’Action Bénévoles de Farnham, Chiffonnier: 959, rue Principale Est, Farnham, Estrie, QC, J2N 1M8
Low-Income Housing Initiatives
Rent costs are soaring, leaving many lower-income Quebec residents struggling to keep up with rental payments. To find more affordable housing, several low-income housing initiatives and programs are available to help:
- Association des Personnes en Perte d’Autonomie de Chibougamau
- Coopérative de Solidarité en Habitation l’Étale
- Habitations Métatransfert
Final Thoughts
If a personal loan sounds like it makes financial sense for you, your first step is to compare lenders to find the best deal based on your financial and credit profile. You can quickly find a lender using an online loan comparison platform like Loans Canada. Just be sure to determine your financial and credit health before applying so you know where you stand, and apply only with lenders with criteria you can meet.
